On the Governance of State-Owned Economic Groups in Vietnam

42 Pages Posted: 22 Dec 2010 Last revised: 1 Apr 2011

See all articles by Woochan Kim

Woochan Kim

Korea University Business School; European Corporate Governance Institute (ECGI); Asian Institute of Corporate Governance (AICG)

Il-Chong Nam

KDI School of Public Policy and Management

Tran Tien Cuong

Central Institute for Economic Management (CIEM)

Date Written: April 12, 2010

Abstract

In this paper, we diagnose the current status of state-owned enterprises (SOEs) in Vietnam, identify their key governance challenges, and recommend policy directions in light of Korea’s and other countries’ experiences. Among various types of SOEs in Vietnam, we limit our focus to economic groups introduced since 2006. We recommend (i) to re-clarify the objective of economics groups, (ii) to reconcile the conflicting objectives, (iii) to expand and strengthen the role of SCIC, (iv) to strengthen the internal governance mechanism, (v) to develop a well-functioning capital market, (vi) to limit the diversification into non-core business areas, (vii) to enhance the transparency of ownership structure, and (viii) to strengthen the protection of minority shareholders.

Keywords: SOE, ownership structure, governance, investor protection, Vietnam

JEL Classification: L22, L32, O16, O53, P2

Suggested Citation

Kim, Woochan and Nam, Il-Chong and Cuong, Tran Tien, On the Governance of State-Owned Economic Groups in Vietnam (April 12, 2010). Available at SSRN: https://ssrn.com/abstract=1729093 or http://dx.doi.org/10.2139/ssrn.1729093

Woochan Kim (Contact Author)

Korea University Business School ( email )

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European Corporate Governance Institute (ECGI) ( email )

c/o ECARES ULB CP 114
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Belgium

Asian Institute of Corporate Governance (AICG) ( email )

1, 5-ga, Anam-dong
Sungbuk-gu
Seoul, 136-701
Korea, Republic of (South Korea)

Il-Chong Nam

KDI School of Public Policy and Management ( email )

P.O. Box 184
Seoul, 130-868
Korea, Republic of (South Korea)

Tran Tien Cuong

Central Institute for Economic Management (CIEM) ( email )

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